2009-06-11
22:26:26
Common council is being told the city cannot afford the pension plan as is -- the tough talk is coming from pension consultants Morneau Sobeco as councilors struggle with how to deal with a 150-million dollar shortfall in the plan.
Consultant Jeff Penner says there are a couple of "tough to swallow" proposals for employees including higher contributions - reduced benefits - and - even temporarily suspending indexing for pensioners.
Council has agreed in principle to move in the direction of sharing the shortfall on a 50-50 basis with employees and retirees -- but -- councilors are waiting for another meeting with the consultants next month before making any firm decisions.
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